Woodside Petroleum Ltd

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2.1 Income statement

The income statement, also known as the Profit and Loss Statement, measures a company’s financial performance and it is important because it shows the profitability of a company during the time interval specified in its heading. It summarises the organisation’s revenues and expenses annually for its fiscal year. It also shows the net profit or loss incurred over a specific accounting period. Net profit or loss is arrived by deducting expenses from income. Table 2.1: Income statement of Woodside for the last five years

INCOME STATEMENT

Woodside Petroleum

For the Years Ending (Dec 31,2015-Dec 30,2011)

2015

2014

2013

2012

2011

Currency units

AUD000

AUD000

AUD000

AUD000

AUD000

Revenue

6,967,199

10,290,736

8,286,172

9,853,826

6,740,501

Cost of sales

4,222,087

3,961,040

3,563,974

3,596,949

2,276,602

Gross profit

2,745,112

6,329,696

4,722,198

6,256,877

4,463,899

Operating profit (EBITDA)

2,659,928

7,004,295

5,226,430

6,886,137

3,951,423

Depreciation

2,054,025

1,959,224

1,739,395

1,672,073

912,290

Interest received

(5,496)

(20,609)

(13,739)

(10,991)

(13,739)

Interest Expense

122,280

244,560

259,673

199,220

49,461

Profit before tax

489,119

4,821,120

3,241,101

5,025,835

3,003,411

Income tax expense

333,865

1,364,312

748,792

843,593

930,151

Outside equity interest

119,532

140,141

89,305

83,810

2,748

Net Profit after tax

35,722

3,316,667

2,403,004

4,098,432

2,070,512

Additional information

Dividends paid to shareholders

2,376,899

2,423,613

2,387,890

1,345,077

1,189,823

Number of shares on issue (end of

823,910,657

823,910,657

823,910,657

823,910,657

805,671,604

period)

Earnings per share (basic) (cents):

4.4

402.6

292.7

502.9

261.1

Dividends per share

0.003

0.003

0.003

0.002

0.001

Source: Appendix 1 IBIS World 2016 modified by Mimi Tin Tin Aye

Woodside Petroleum has operated profitably over the last five years—the income statement indicates a net profit after tax—demonstrated its ability to use borrowed and invested funds in a successful manner. However, it can be deduce that the net profit margin is not stable over the years and gone down much lower in 2015 of just 7.1 per cent. The net profit after tax was $35,722,000 was considered disappointing